Project Number: 20141202
Project Type: Retention
Parcel ID: 093400 00549
County Commission District: 12 | City Council District: 3

Summary

Cummins, Inc. was approved for a 15-year Retention to enable the company to retain 897 jobs and add 70 net new jobs at 4155 Questway and 5800 Challenge Drive.

The average annual salary of the new and retained employees will be $37,800 and $36,639 respectively.

Cummins will invest $9,455,000 million in Real and Personal property and receive a $27,761,100 Community Reinvestment Credit (CRC).

The project is projected to create more than $59 million in new tax revenue for Memphis and Shelby County and has a benefit/cost ratio of $4.61 of new tax revenue for every $1.00 of taxes abated.

Cummins currently leases 100 percent (704,564 sq. ft.) of the building at the 4155 Quest Way location, a key logistics and distribution center. The company plans to lease an additional 400,000 Sq.ft. (100 percent) at 5800 Challenge Drive to meet its growing business needs.The PILOT sponsor (fee owner) for both properties is Prologis Macquarie Tennessee II LLC.

Cummins Inc. is a global power leader that designs, manufactures, sells and services diesel engines. The Memphis division provides services for Alabama, Arkansas, Louisiana and Mississippi.

PILOT Term:

15 years

Projected New Jobs:

70

Projected Retained Jobs:

897

Total Jobs:

967

Projected Average Payroll of New Jobs:

$37,800

Projected Average Payroll of Retained Jobs:

$36,639

Annual New Direct/Indirect Payroll:

$96,441,581

Annual Retained Direct/Indirect Payroll:

Not applicable

Total Capital Investment:

$37,216,100
Real Property Investment:
$6,400,000

Personal Property Investment:
$3,055,000

Community Reinvestment Credit (CRC):
$27,761,100

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$59,654,475

Projected Taxes Abated:

$12,934,650
City: $5,652,442
County: $7,282,208

Benefit/Cost Ratio:

4.61

Projected MWBE/LOSB Spending:

$7,101,204

Incentive Provided:

$12,934,650

Compliance Information

Not applicable

Approved

12/17/2014

Ramp up Period

2 years

Closing

Not applicable

Effective

Not applicable

Lease Begins

Not applicable

Lease Expires

Not applicable

Amended

Not applicable

Property Details

Lease Began

Not applicable

Lease Expires

Not applicable

Cummins, Inc.

4155 Quest Way , Memphis , TN 38115